Anthropic to sue DoD over AI supply-chain risk label

Anthropic CEO Dario Amodei announced on Thursday that the AI firm plans to contest the Department of Defense’s designation of the company as a supply-chain risk, asserting that this classification is legally unsound. 

This official designation followed a weeks-long dispute over military control of AI systems. Amodei emphasized that Anthropic’s AI will not be used for mass surveillance of Americans or for fully autonomous weapons. However, the Pentagon argued that it requires unrestricted access to AI technologies for all lawful purposes. Being labeled a supply-chain risk can prevent a company from working with the Pentagon and its contractors.

In his statement, Amodei clarified that the vast majority of Anthropic’s customers will not be affected by this designation. He explained that it applies specifically to contracts with the Department of Defense, not to all business relationships involving those contractors. He argued that the law requires the government to use the least restrictive means necessary to safeguard its supply chain.

Amodei recently addressed a leaked internal memo in which he criticized rival OpenAI’s military dealings as “safety theater.” OpenAI has announced a deal that will replace Anthropic. Amodei apologized for the leak and the memo’s tone, explaining that it was written on a particularly challenging day following a series of unexpected federal announcements, and he no longer stands by those views.

Despite this conflict, Amodei emphasized that Anthropic’s primary focus is supporting American soldiers and national security experts. The company will continue to provide its models for ongoing U.S. operations in Iran at a nominal cost to facilitate the transition.

Anthropic is expected to challenge the designation in federal court. However, legal experts note that overcoming this hurdle will be difficult, as courts are generally reluctant to second-guess the government’s broad discretion on national security matters.